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Hi, My names Sean. I need any sort of help you can offer in starting a property preservation buisness, I've already done sub-con work for 3 years now and have all the proper equipment and training so with that being said any help you can provide would be very appreciated. Some of my questions are:

1.People say finding local REO agents/real estate agents to work for is better, and with better pay, with that being said what guidelines would you be going off of? Would I set my own as a company? Or would the real estate agent have specific guidelines for me to follow?

2.What are some key things I need to know in starting up a property preservation/REO Services buisness?

3.How much capitol in the bank should a company have to start up a small property preservation buisness?

4.Can a property preservation buisness start out with NO sub-cons and have it work? Or is is better to start out with sub-cons as well?
 
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locsaint said:
Hi, My names Sean. I need any sort of help you can offer in starting a property preservation buisness, I've already done sub-con work for 3 years now and have all the proper equipment and training so with that being said any help you can provide would be very appreciated. Some of my questions are:

1.People say finding local REO agents/real estate agents to work for is better, and with better pay, with that being said what guidelines would you be going off of? Would I set my own as a company? Or would the real estate agent have specific guidelines for me to follow?

2.What are some key things I need to know in starting up a property preservation/REO Services buisness?

3.How much capitol in the bank should a company have to start up a small property preservation buisness?

4.Can a property preservation buisness start out with NO sub-cons and have it work? Or is is better to start out with sub-cons as well?
I'll chime in... From one newbie to another... by no means do I know anything other than my own limited experience... I started doing trashouts and sales cleans through sheer luck. I got a call, gave a price and I've done pretty well. But, it's is direct with a mortgage company...not a national or broker, who wants a discount of the HUD Schedule. I would call on local real estate companies and see if you can start there. It's likely, however, that they have folks with whom they've been doing business, so you'll have to work hard at getting a shot at one of their jobs. I've been contacted by other firms who give, in my opinion, almost offensively ridiculous price lists. Not only that, they want you to follow their every rule/request to a "T" or they will use that as an avenue to delay, or even deny payment. I've read posts on this forum about companies charging back the contractor for work that supposedly wasn't done, or lack of the correct pictures, etc. I've researched going into this business more strongly, but I'm wary doing so. In my opinion, one would need to have 4-5 months of working capital in order to float your business while you wait to get paid...remember, the landfills, your employees, the mechanic who works on your truck, your mortgage company, etc., all want to be paid now!!-- not in 120 days. If you are going to jump in and take work, you need to be efficient as all get out if you're gonna turn a profit. With the lowering rates, you're going have to move fast and get in and out. In my experience, getting in too big of a hurry leads to mistakes...mistakes that I can't afford.

You mention you know how to do everything... be sure you do... mess up a winterization and you may be on the hook for a flooded house...even if you did it correctly, but it was de-winterized by someone else...your customer may come back to you claiming you didn't do the work correctly. So, I would make sure you truly know all the "in's and out's" of the business before jumping in wholeheartedly. I would also know your insurance policy backwards and forwards...you may need it.

One last thing...read as many of the posts on this forum as you can..it'll take hours. But, in my opinion, it is the best info I've found. There's tons of stuff on the "internets" about how you can make a fortune working foreclosures, but I would take that info with a grain of salt...they want your money.

Personally, I would like to do more of this work, and I believe it is out there, but I'm trying to go slow. Maybe I'll lose out on some "fast cash" by not signing up with these "nationals" I hear about, but I'd rather be profitable in the long run. Sure they'll send you tons of work, but I'd rather clear a nice profit on 5 properties than to lose money on 20.

Good luck!! I'm not trying to discourage you at all, and I certainly don't know you. But, when I first started doing this I was pretty fired up and thought, "hell, I can do this all day long and make some decent money." Well, you'll find out through this forum, that we ain't the first to the dance, and many here have been in the industry for a long time, and they have a lot of good information. But, in my opinion, like anything else, it takes hard work, dedication, attention to your bottom line, and maybe a break or two... I'll step down of my soap box now... BTW, my advice is worth about as much as you paid for it.... $0.00 :thumbup:
 
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EZ Land said:
I'll chime in... From one newbie to another... by no means do I know anything other than my own limited experience... I started doing trashouts and sales cleans through sheer luck. I got a call, gave a price and I've done pretty well. But, it's is direct with a mortgage company...not a national or broker, who wants a discount of the HUD Schedule. I would call on local real estate companies and see if you can start there. It's likely, however, that they have folks with whom they've been doing business, so you'll have to work hard at getting a shot at one of their jobs. I've been contacted by other firms who give, in my opinion, almost offensively ridiculous price lists. Not only that, they want you to follow their every rule/request to a "T" or they will use that as an avenue to delay, or even deny payment. I've read posts on this forum about companies charging back the contractor for work that supposedly wasn't done, or lack of the correct pictures, etc. I've researched going into this business more strongly, but I'm wary doing so. In my opinion, one would need to have 4-5 months of working capital in order to float your business while you wait to get paid...remember, the landfills, your employees, the mechanic who works on your truck, your mortgage company, etc., all want to be paid now!!-- not in 120 days. If you are going to jump in and take work, you need to be efficient as all get out if you're gonna turn a profit. With the lowering rates, you're going have to move fast and get in and out. In my experience, getting in too big of a hurry leads to mistakes...mistakes that I can't afford.

You mention you know how to do everything... be sure you do... mess up a winterization and you may be on the hook for a flooded house...even if you did it correctly, but it was de-winterized by someone else...your customer may come back to you claiming you didn't do the work correctly. So, I would make sure you truly know all the "in's and out's" of the business before jumping in wholeheartedly. I would also know your insurance policy backwards and forwards...you may need it.

One last thing...read as many of the posts on this forum as you can..it'll take hours. But, in my opinion, it is the best info I've found. There's tons of stuff on the "internets" about how you can make a fortune working foreclosures, but I would take that info with a grain of salt...they want your money.

Personally, I would like to do more of this work, and I believe it is out there, but I'm trying to go slow. Maybe I'll lose out on some "fast cash" by not signing up with these "nationals" I hear about, but I'd rather be profitable in the long run. Sure they'll send you tons of work, but I'd rather clear a nice profit on 5 properties than to lose money on 20.

Good luck!! I'm not trying to discourage you at all, and I certainly don't know you. But, when I first started doing this I was pretty fired up and thought, "hell, I can do this all day long and make some decent money." Well, you'll find out through this forum, that we ain't the first to the dance, and many here have been in the industry for a long time, and they have a lot of good information. But, in my opinion, like anything else, it takes hard work, dedication, attention to your bottom line, and maybe a break or two... I'll step down of my soap box now... BTW, my advice is worth about as much as you paid for it.... $0.00 :thumbup:
What he said. :clap:
 
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